As filed with the Securities and Exchange Commission on June 23, 2008

1933 Act No. 333-146680

1940 Act No. 811-22132

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-1A

(Check appropriate box or boxes)

ABERDEEN FUNDS

(Exact Name of Registrant as Specified in Charter)

5 Tower Bridge

300 Barr Harbor Drive, Suite 300

West Conshohocken, PA 19428

(Address of Principal Executive Offices) (Zip Code)

(212) 345-6531

(Registrant’s Telephone Number, including Area Code)

Lucia Sitar, Esquire

c/o Aberdeen Asset Management Inc

1735 Market Street, 37^th Floor

Philadelphia, PA 19103

(Name and Address of Agent for Service of Process)

With Copies to:

Barbara A. Nugent, Esquire

Stradley Ronon Stevens & Young, LLP

2600 One Commerce Square

Philadelphia, PA 19103

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box):

If appropriate, check the following box:

PROSPECTUS

ABERDEEN FUNDS EQUITY SERIES

June 23, 2008

Aberdeen Select Equity Fund

Aberdeen Select Mid Cap Growth Fund

Aberdeen Select Small Cap Fund

Aberdeen Select Growth Fund

Aberdeen Hedged Core Equity Fund

Aberdeen Market Neutral Fund

Aberdeen Equity Long-Short Fund

Aberdeen Health Sciences Fund

Aberdeen Natural Resources Fund

Aberdeen Technology And Communications Fund

Aberdeen Small Cap Fund

Aberdeen Small Cap Opportunities Fund

Aberdeen Small Cap Growth Fund

Aberdeen Small Cap Value Fund

As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved these Funds’ shares or determined whether this prospectus is complete or accurate. To state otherwise is a crime.

Table of Contents

Aberdeen Funds

This prospectus provides information about fourteen funds (the “Funds”), the shares of which are offered by Aberdeen Funds (the “Trust”):

The Select Equity, Select Mid Cap Growth, Select Small Cap and Select Growth Funds are primarily intended to help investors grow their capital through equity investments in leading U.S. companies. These specialty Funds are stock portfolios focusing in major markets and featuring a select group of securities. Since these Funds invest in fewer individual securities than most mutual funds, they are subject to substantially higher risks and greater volatility than other mutual funds. These Funds may not be suitable for all investors. To decide if one or more of these Funds is appropriate for your investment program, you should consider your personal investment objectives and financial circumstances, the length of time until you need your money and the amount of risk you are comfortable taking.

The Hedged Core Equity, Market Neutral and Equity Long-Short Funds are primarily intended to seek long-term capital appreciation regardless of market conditions through the purchase and short sale of securities. These Funds use investment strategies, such as short selling, that may present higher risks than other mutual funds. These Funds are not appropriate for all investors.

The Health Sciences, Natural Resources and Technology and Communications Funds are primarily intended to help investors seek to grow their capital by pursuing equity investment opportunities in specific market sectors with dynamic prospects. These specialty Funds feature sector portfolios focused on specific industries, including health sciences, natural resources and technology. Since these Funds concentrate their investments in particular sectors of the economy, they may involve substantially higher risks and greater volatility than other mutual funds and may not be appropriate for conservative investors. To decide if one or more of these Funds is appropriate for your investment program, you should consider your personal investment objectives and financial circumstances, the length of time until you need your money and the amount of risk you are comfortable taking.

The Small Cap, Small Cap Opportunities, Small Cap Growth and Small Cap Value Funds are primarily intended to help investors seek to grow their capital by pursuing equity investments in small-cap companies.

The following section summarizes key information about each Fund, including information regarding their investment objectives, principal strategies, principal risks, performance and fees. As with any mutual fund, there can be no guarantee that any of the funds will meet their respective objectives or that the fund’s performance will be positive for any period of time.

Each Fund’s investment objective can be changed without shareholder approval. Aberdeen Asset Management Inc. (the “Adviser”) serves as each Fund’s investment adviser.

A Note About Share Classes

Each Fund offers six different share classes – Class A, Class B, Class C, Class R, Institutional Service Class and Institutional Class. The Mid Cap Fund also offers Class D shares. Class B shares are not available to new investors. Shareholders who currently own Class B shares are eligible to purchase additional Class B shares of the Fund(s) they own.

Aberdeen Funds

1

Section 1 – Aberdeen Select Equity Fund

Summary and Performance

Objective

The Select Equity Fund seeks a high total return from a select portfolio of U.S. securities.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Select Equity Fund invests at least 80% of the value of its net assets in equity securities, primarily in common stock. If the Select Equity Fund changes its 80% policy, it will notify shareholders at least 60 days before the change and will change the name of the Select Equity Fund. The Select Equity Fund seeks to invest in securities of U.S. companies that management believes have strong franchises capable of taking advantage of their positions in the marketplace. The securities of U.S. companies selected for the Select Equity Fund’s portfolio are those companies that management believes will become dominant in their industries because the companies have reputations for quality management and superior products and services.

The portfolio manager seeks companies which generally meet one of the following characteristics:

The Select Equity Fund is nondiversified, which means that it will invest a significant portion of the Select Equity Fund’s assets in the securities of a small number of companies. The Select Equity Fund typically focuses its investments in a core group of 25 to 35 common stocks of U.S. large-cap and U.S. mid-cap companies. A U.S. company is defined as having been organized under the laws of the United States, having a principal place of business in the United States or if its stock trades primarily in the United States. The Select Equity Fund considers large-cap companies to be those companies having a market capitalization similar to companies included in the Standard & Poor’s 500^® Index. The Select Equity Fund considers mid-cap companies to be those companies having a market capitalization similar to companies included in the Russell Mid Cap^® Index. As of April 30, 2008, the dollar range of the Select Equity Fund’s investments in large cap and mid cap companies based on the composition of these indices range from $129 million to $474.9 billion. The Fund also may invest in convertible securities, which are debt securities or preferred stock that may be converted into common stock.

In seeking total return, the portfolio manager seeks returns from both capital gains (i.e., an increase in the value of the stocks the Select Equity Fund holds) as well as income generated by dividends paid by stock issuers. Over time, stock markets in general may produce proportionately higher capital gains relative to dividends, or vice versa, at different periods. While many of the stocks the Select Equity Fund invests in pay dividends, the portfolio manager anticipates that capital gains may constitute a somewhat higher proportion of returns than dividends under current market conditions. However, stock markets could change, either suddenly or gradually, so that over time a higher proportion of the Select Equity Fund’s returns would be derived from dividends.

The Select Equity Fund usually sells portfolio securities if:

The Select Equity Fund is actively managed. As such, the Fund may have high portfolio turnover and the portfolio turnover rate may exceed 100% per year.

Principal Risks

The Select Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Select Equity Fund’s investments – and therefore, the value of Select Equity Fund shares – may fluctuate. These changes may occur because of:

Stock Market Risk – the Select Equity Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade go down.

Selection Risk – the portfolio manager may select securities that underperform the stock market, the Standard & Poor’s 500^® Index (“S&P 500 Index”), or other funds with similar investment objectives and strategies.

Aberdeen Select Equity Fund

2

Section 1 – Aberdeen Select Equity Fund

Summary and Performance (continued)

Nondiversified Fund Risk – because the Select Equity Fund may hold larger positions in fewer securities than other funds, a single security’s increase or decrease in value may have a greater impact on the Select Equity Fund’s value and total return.

Portfolio Turnover – the Select Equity Fund may engage in active and frequent trading of portfolio securities. A higher portfolio turnover rate increases transaction costs and as a result may adversely impact the Select Equity Fund’s performance. High portfolio turnover may also increase share price volatility and may generate more short-term capital gains that will generally be taxable to Fund shareholders as ordinary income.

If the value of the Select Equity Fund’s investments goes down, you may lose money.

For additional information regarding the above identified risks, see Section 2, Fund Details: Additional Information about Investments, Investment Techniques and Risks.

Performance

The returns presented for the Select Equity Fund reflect the performance of the Nationwide Leaders Fund (the “Predecessor Fund”), a series of Nationwide Mutual Funds. The Select Equity Fund has adopted the performance of the Predecessor Fund as the result of a reorganization in which the Select Equity Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Select Equity Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

The bar chart and table below can help you evaluate both potential risks and potential rewards for the Select Equity Fund. The bar chart shows how the Fund’s annual total returns have varied from year to year. The returns in the bar chart have not been adjusted to show the effect of taxes and do not reflect the impact of sales charges. If taxes and the applicable sales charges were included, the annual total returns would be lower than those shown. The table compares the Fund’s average annual total returns to the returns of a broad-based securities index. The bar chart and table assume that all dividends and distributions are reinvested in the Fund. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.

Annual Total Returns – Class A Shares

(Years Ended December 31)

Best Quarter: 14.10% – 2nd qtr. of 2003

Worst Quarter: -16.30% – 3rd qtr. of 2002

Aberdeen Select Equity Fund

3

Section 1 – Aberdeen Select Equity Fund

Summary and Performance (continued)

After-tax returns are shown in the table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average annual total returns(1)

as of December 31, 2007

Aberdeen Select Equity Fund

4

Section 1 – Aberdeen Select Equity Fund

Summary and Performance (continued)

Fees and Expenses

This table describes the fees and expenses that you may pay when buying and holding shares of the Select Equity Fund depending on the share class you select.

(Footnotes included after Example)

Aberdeen Select Equity Fund

5

Section 1 – Aberdeen Select Equity Fund

Summary and Performance (continued)

Example

This Example is intended to help you compare the cost of investing in the Select Equity Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Select Equity Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year, no change in expenses and the expense limitations for one year only (if applicable). Although your actual costs may be higher or lower, based on these assumptions your costs would be:

You would pay the following expenses on the same investment if you did not sell your shares**:

The Select Equity Fund does not apply sales charges on reinvested dividends and other distributions. If these sales charges (loads) were included, your costs would be higher.

Aberdeen Select Equity Fund

6

Section 1 – Aberdeen Select Equity Fund

Summary and Performance (concluded)

Aberdeen Select Equity Fund

7

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance

Objective

The Mid Cap Fund seeks long-term capital appreciation.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Mid Cap Fund invests at least 80% of the value of its net assets in equity securities issued by mid-cap companies. Equity securities in which the Mid Cap Fund may invest include common stock, preferred stock, securities convertible into common stock or securities (or other investments) with prices linked to the value of common stocks. Mid-cap companies are companies that have market capitalizations similar to those of companies included in the Russell Midcap^® Index, ranging from $129 million to $54.6 billion as of April 30, 2008. If the Mid Cap Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and will change the name of the Mid Cap Fund.

In selecting an investment for the Mid Cap Fund’s portfolio, management seeks to invest in securities of a mid-cap company that management believes is, or has the potential to be, best capable of taking advantage of its positioning within its business sector, with high earnings growth potential and a minimum market capitalization of approximately $1 billion. Typically, the companies in which the Mid Cap Fund will invest exhibit greater-than-average growth prospects, given the prevailing economic climate. The Mid Cap Fund management tries to choose such investments that will increase in value over the long term. Under normal circumstances, the Mid Cap Fund holds between 25 and 40 such securities.

The portfolio manager uses both a “bottom-up” and a “top-down” approach to select securities for the Mid Cap Fund. The portfolio manager conducts a “bottom-up” analysis of potential investments, which means an in-depth evaluation of each particular company whose equity securities may be considered for inclusion in the Mid Cap Fund. The portfolio manager seeks individual companies with attractive earnings potential and sustainable growth characteristics that may not be fully recognized by the market. The portfolio manager evaluates each company’s stock price over the course of 12 months, paying particular attention to minimum rates of capital appreciation, before a stock will be added to the Mid Cap Fund.

The “top-down” aspect of the approach then considers such overall factors as the general health of the economy, interest rates, inflation, Federal Reserve policy and the vitality of particular industry sectors. This enables the portfolio manager to focus on the most attractive business sectors and to identify the most attractive prospective investments from the large universe of mid-cap stocks.

From time to time, the Mid Cap Fund may invest in companies experiencing “special situations” such as acquisitions, consolidations, mergers, reorganizations or other unusual developments, if the portfolio manager believes equity securities issued by those companies will increase in value.

The Mid Cap Fund’s portfolio manager considers selling a security if:

While the Mid Cap Fund may sell a security if the security no longer falls within the market capitalization range that the Mid Cap Fund has defined for mid cap companies, it is not required to sell a security solely because of that fact.

The Mid Cap Fund is actively managed. As such, the Fund may have high portfolio turnover and the portfolio turnover rate may exceed 100% per year.

The Adviser has selected Security Investors, LLC (“Security Investors, LLC”) as subadviser to manage the Mid Cap Fund’s portfolio on a day-to-day basis.

Principal Risks

The Mid Cap Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Mid Cap Fund’s investments – and therefore, the value of Mid Cap Fund shares – may fluctuate. These changes may occur because of:

Stock Market Risk – the Mid Cap Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade go down.

Selection Risk – the portfolio manager may select securities that underperform the stock market, the Russell Midcap^® Growth Index, or other funds with similar investment objectives and strategies.

Aberdeen Select Mid Cap Growth Fund

8

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance (continued)

Mid-Cap Risk – in general, stocks of mid-cap companies may be more volatile and less liquid than larger company stocks.

Special Situation Companies Risk – Special situation companies are companies that may be involved in acquisitions, consolidations, mergers, reorganizations, or other unusual developments that can affect a company’s market value. If the anticipated benefits of the developments do not ultimately materialize, the value of a special situation company may decline.

Growth Style Risk – over time, a growth investing style may go in and out of favor, causing the Mid Cap Fund to sometimes underperform other equity funds that use different investing styles.

Focused Investment Risk – investing in a select group of securities could subject the Mid Cap Fund to greater risk of loss and could be considerably more volatile than a broad-based market index or other mutual funds that are diversified across a greater number of securities and industries.

Portfolio Turnover – the Fund may engage in active and frequent trading of portfolio securities. A higher portfolio turnover rate increases transaction costs and as a result may adversely impact the Mid Cap Fund’s performance. High portfolio turnover may also increase share price volatility and may generate more short-term capital gains that will generally be taxable to Fund shareholders as ordinary income.

If the value of the Fund’s investments goes down, you may lose money.

For additional information regarding the above identified risks, see Section 2, Fund Details: Additional Information about Investments, Investment Techniques and Risks.

Performance

The returns presented for the Mid Cap Fund reflect the performance of the Nationwide Mid Cap Growth Leaders Fund (the “Predecessor Fund”), a series of Nationwide Mutual Funds, from May 11, 1998 to the present and the Growth Fund of FHIT (“FHIT predecessor fund”) prior to May 11, 1998. The Mid Cap Fund has adopted the performance of the Predecessor Fund as the result of a reorganization in which the Mid Cap Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Predecessor Fund had previously acquired the FHIT predecessor fund in a reorganization and adopted its performance. The Mid Cap Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

The bar chart and table below can help you evaluate both potential risks and potential rewards for the Mid Cap Fund. The bar chart shows how the Fund’s annual total returns have varied from year to year. The returns in the bar chart have not been adjusted to show the effect of taxes and do not reflect the impact of sales charges. If taxes and the applicable sales charges were included, the annual total returns would be lower than those shown. The table compares the Fund’s average annual total returns to the returns of a broad-based securities index. The bar chart and table assume that all dividends and distributions are reinvested in the Fund. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.

Annual Total Returns – Class D Shares

(Years Ended December 31)

Best Quarter: 23.56% – 1st qtr. of 2000

Worst Quarter: -36.86% – 1st qtr. of 2001

Aberdeen Select Mid Cap Growth Fund

9

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance (continued)

After-tax returns are shown in the table for Class D shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average annual total returns(1)

as of December 31, 2007

Aberdeen Select Mid Cap Growth Fund

10

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance (continued)

Fees and Expenses

This table describes the fees and expenses that you may pay when buying and holding shares of the Mid Cap Fund depending on the share class you select.

(Footnotes included after Example)

Aberdeen Select Mid Cap Growth Fund

11

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance (continued)

Example

This Example is intended to help you to compare the cost of investing in the Mid Cap Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Mid Cap Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year, no change in expenses and the expense limitations for one year only (if applicable). Although your actual costs may be higher or lower, based on these assumptions your costs would be:

You would pay the following expenses on the same investment if you did not sell your shares**:

The Mid Cap Fund does not apply sales charges on reinvested dividends and other distributions. If these sales charges (loads) were included, your costs would be higher.

Aberdeen Select Mid Cap Growth Fund

12

Section 1 – Aberdeen Select Mid Cap Growth Fund

Summary and Performance (concluded)

Aberdeen Select Mid Cap Growth Fund

13

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance

Objective

The Select Small Cap Fund seeks long-term capital appreciation.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Select Small Cap Fund typically invests at least 80% of the value of its net assets in equity securities of issuers considered to be small-cap companies as of the time of investment. If the Select Small Cap Fund changes its 80% investment policy it will notify shareholders at least 60 days before the change and will change the name of the Select Small Cap Fund. The Select Small Cap Fund considers small-cap companies to be companies having a market capitalization similar to companies included in the Russell 2000^® Index, ranging from $10 million to $7.4 billion as of April 30, 2008. The equity securities in which the Select Small Cap Fund may invest include common stock, preferred stock, securities convertible into common stock or securities (or other investments) with prices linked to the value of common stocks. In selecting an investment for the Select Small Cap Fund’s portfolio, management seeks to invest in securities of a small-cap company that management believes is within a top business sector and is capable of taking advantage of its positioning within that business sector. While the Select Small Cap Fund may sell a security if its market capitalization exceeds the market capitalization range the Select Small Cap Fund has defined for small-cap companies, it is not required to sell solely because of that fact.

The Select Small Cap Fund consists of two sleeves, or portions, with one sleeve managed by the Adviser and the other sleeve managed by a subadviser. The Adviser selects the Select Small Cap Fund’s subadviser and monitors its performance on an ongoing basis. Currently, the Adviser is directly managing the small-cap value portion and the Adviser has selected NorthPointe Capital LLC (“NorthPointe”) to manage the small-cap growth portion. The Fund’s assets are typically allocated in equal portions to each manager, although at times more of the Fund’s assets may be allocated to either growth or value, depending on market conditions as determined by the Adviser.

The Adviser employs a value style of investing and looks at factors such as earnings growth and relative value, management action and price trends when selecting securities. The Adviser focuses on securities that exhibit some or all of the following characteristics:

The Adviser considers selling a security when:

NorthPointe employs a growth style by investing in securities of undiscovered, emerging growth small-cap companies in an attempt to provide investors with potentially higher returns than funds that invest primarily in larger, more established companies. NorthPointe focuses on securities that exhibit some or all of the following characteristics:

NorthPointe considers selling a particular security due to:

Aberdeen Select Small Cap Fund

14

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance (continued)

The Fund may invest without limit in initial public offerings (“IPOs”) of small-cap companies, although such IPOs may not be available for investment by the Fund and the impact on performance of any such IPO would be uncertain.

The Select Small Cap Fund is actively managed. As such, the Fund may have high portfolio turnover and the portfolio turnover may exceed 100% per year.

Principal Risks

The Select Small Cap Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Select Small Cap Fund’s investments – and therefore, the value of Select Small Cap Fund shares – may fluctuate. These changes may occur because of:

Stock Market Risk – the Select Small Cap Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade go down.

Selection Risk – the portfolio managers may select securities that underperform the stock market, the Russell 2000^® Index, or other funds with similar investment objectives and strategies.

Small Cap Risk – in general, stocks of small-cap companies trade in lower volumes and are subject to greater or more unpredictable price changes than securities of larger companies or the market overall. Small-cap companies may have limited product lines or markets, be less financially secure than larger companies, or depend on a small number of key personnel. If adverse developments occur, such as due to management changes or product failure, the Fund’s investment in a small-cap company may lose substantial value. Investing in small-cap companies requires a longer term investment view and may not be appropriate for all investors.

Growth Versus Value Style Risk – over time growth and value investing styles may go in and out of favor (usually not at the same time) causing the Select Small Cap Fund to sometimes underperform other equity funds that use different investing styles. There is a risk that the Select Small Cap Fund’s management may allocate a greater portion of the Fund’s assets to growth when value is more in favor, or vice-versa.

Initial Public Offering Risk – IPOs may be limited and the Select Small Cap Fund may not be able to buy any shares at the offering price, or may not be able to buy as many shares at the offering price as it would like. Further, IPO prices often are subject to greater and more unpredictable price changes than more established stocks.

Portfolio Turnover – the Select Small Cap Fund may engage in active and frequent trading of portfolio securities. A higher portfolio turnover rate increases transaction costs and as a result may adversely impact the Fund’s performance. High portfolio turnover may also increase share price volatility and may generate more short-term capital gains that will generally be taxable to Fund shareholders as ordinary income.

If the value of the Select Small Cap Fund’s investments goes down, you may lose money.

For additional information regarding the above identified risks, see Section 2, Fund Details: Additional Information about Investments, Investment Techniques and Risks.

Performance

The returns presented for the Select Small Cap Fund reflect the performance of the Nationwide Small Cap Leaders Fund (the “Predecessor Fund”), a series of Nationwide Mutual Funds. The Select Small Cap Fund has adopted the performance of the Predecessor Fund as the result of a reorganization in which the Select Small Cap Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Select Small Cap Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

The bar chart and table below can help you evaluate both potential risks and potential rewards for the Select Small Cap Fund. The bar chart shows how the Fund’s annual total returns have varied from year to year. The returns in the bar chart have not been adjusted to show the effect of taxes and do not reflect the impact of sales charges. If taxes and the applicable sales charges were included, the

Aberdeen Select Small Cap Fund

15

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance (continued)

annual total returns would be lower than those shown. The table compares the Fund’s average annual total returns to the returns of a broad-based securities index. The bar chart and table assume that all dividends and distributions are reinvested in the Fund. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.

Annual Total Returns – Class A Shares

(Years Ended December 31)

Best Quarter: 20.15% – 1st qtr. of 2006

Worst Quarter: -8.99% – 4th qtr. of 2007

After-tax returns are shown in the table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average annual total returns(1)

as of December 31, 2007

Aberdeen Select Small Cap Fund

16

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance (continued)

Fees and Expenses

This table describes the fees and expenses that you may pay when buying and holding shares of the Select Small Cap Fund depending on the share class you select.

(Footnotes included after Example)

Aberdeen Select Small Cap Fund

17

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance (continued)

Example

This Example is intended to help you compare the cost of investing in the Select Small Cap Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Select Small Cap Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year, no change in expenses and the expense limitations for one year only (if applicable). Although your actual costs may be higher or lower, based on these assumptions your costs would be:

You would pay the following expenses on the same investment if you did not sell your shares**:

The Select Small Cap Fund does not apply sales charges on reinvested dividends and other distributions. If these sales charges (loads) were included, your costs would be higher.

Aberdeen Select Small Cap Fund

18

Section 1 – Aberdeen Select Small Cap Fund

Summary and Performance (concluded)

Aberdeen Select Small Cap Fund

19

Section 1 – Aberdeen Select Growth Fund

Summary and Performance

Objective

The Select Growth Fund seeks long-term growth.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Select Growth Fund invests at least 80% of the value of its net assets in equity securities. Equity securities include common stock and preferred stock. The Select Growth Fund seeks to invest in securities of U.S. companies that management believes have strong and improving franchises capable of taking advantage of growth opportunities. The securities of U.S. companies selected for the Select Growth Fund’s portfolio are those companies that management believes have high growth potential and reputations for quality management and superior products and services. The Select Growth Fund typically focuses its investments in a core group of 25 to 35 common stocks of U.S. companies of any size whose earnings are expected to grow faster than those of other companies in the market. The Select Growth Fund may hold a limited number of additional common stocks at times when the portfolio managers are accumulating new positions, selling existing positions, or responding to exceptional market conditions. A U.S. company is defined as having been organized under the laws of the United States, having a principal place of business in the United States, or if its stock trades primarily in the United States.

The Select Growth Fund is nondiversified, which means that it may invest a significant portion of the Select Growth Fund’s assets in the securities of a single or small number of companies.

The Select Growth Fund usually sells portfolio securities if:

The Select Growth Fund is actively managed. As such, the Fund may have high portfolio turnover and the portfolio turnover rate may exceed 100% per year.

Principal Risks

The Select Growth Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Select Growth Fund’s investments – and therefore, the value of Select Growth Fund shares – may fluctuate. These changes may occur because of:

Stock Market Risk – the Select Growth Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade go down.

Selection Risk – the portfolio managers may select securities that underperform the stock market, the Standard & Poor’s 500^® Index (S&P 500 Index), or other funds with similar investment objectives and strategies.

Growth Style Risk – over time, a growth investing style may go in and out of favor, causing the Select Growth Fund to sometimes underperform other equity funds that use different investing styles.

Nondiversified Fund Risk – because the Select Growth Fund may hold larger positions in fewer securities than other funds, a single security’s increase or decrease in value may have a greater impact on the Select Growth Fund’s value and total return.

Portfolio Turnover – the Select Growth Fund may engage in active and frequent trading of portfolio securities. A higher portfolio turnover rate increases transaction costs and as a result may adversely impact the Fund’s performance. High portfolio turnover may also increase share price volatility and may generate more short-term capital gains that will generally be taxable to Fund shareholders as ordinary income.

If the value of the Select Growth Fund’s investments goes down, you may lose money.

For additional information regarding the above identified risks, see Section 2, Fund Details: Additional Information about Investments, Investment Techniques and Risks.

Performance

The returns presented for the Select Growth Fund reflect the performance of the Nationwide U.S. Growth Leaders Fund (the “Predecessor Fund”), a series of Nationwide Mutual Funds. The Select Growth Fund has adopted the performance of the Predecessor Fund as the result of a reorganization in which the Select Growth Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Select Growth Fund and the

Aberdeen Select Growth Fund

20

Section 1 – Aberdeen Select Growth Fund

Summary and Performance (continued)

Predecessor Fund have substantially similar investment objectives and strategies, except the Select Growth Fund does not invest 25% or more of its net assets in software and related technology industries.

The bar chart and table below can help you evaluate both potential risks and potential rewards for the Select Growth Fund. The bar chart shows how the Fund’s annual total returns have varied from year to year. The returns in the bar chart have not been adjusted to show the effect of taxes and do not reflect the impact of sales charges. If taxes and the applicable sales charges were included, the annual total returns would be lower than those shown. The table compares the Fund’s average annual total returns to the returns of a broad-based securities index. The bar chart and table assume that all dividends and distributions are reinvested in the Fund. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.

Annual Total Returns – Class A Shares

(Years Ended December 31)

Best Quarter: 24.50% – 2nd qtr. of 2003

Worst Quarter: -15.70% – 2nd qtr. of 2002

After-tax returns are shown in the table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average annual total returns(1)

as of December 31, 2007

Aberdeen Select Growth Fund

21

Section 1 – Aberdeen Select Growth Fund

Summary and Performance (continued)

Aberdeen Select Growth Fund

22

Section 1 – Aberdeen Select Growth Fund

Summary and Performance (continued)

Fees and Expenses

This table describes the fees and expenses that you may pay when buying and holding shares of the Select Growth Fund depending on the share class you select.

(Footnotes included after Example)

Aberdeen Select Growth Fund

23

Section 1 – Aberdeen Select Growth Fund

Summary and Performance (continued)

Example

This Example is intended to help you compare the cost of investing in the Select Growth Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Select Growth Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year, no change in expenses, and the expense limitations for one year only (if applicable). Although your actual costs may be higher or lower, based on these assumptions your costs would be:

You would pay the following expenses on the same investment if you did not sell your shares**:

The Select Growth Fund does not apply sales charges on reinvested dividends and other distributions. If these sales charges (loads) were included, your costs would be higher.

Aberdeen Select Growth Fund

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Section 1 – Aberdeen Select Growth Fund

Summary and Performance (concluded)

Aberdeen Select Growth Fund

25

Section 1 – Aberdeen Hedged Core Equity Fund

Summary and Performance

Objective

The Hedged Core Equity Fund seeks long-term capital appreciation.

Principal Strategies

Under normal circumstances, the Hedged Core Equity Fund will have both long and short positions in equity securities, primarily common stocks of large-cap companies that are organized under the laws of the United States, have their principal places of business in the United States, or whose stock is traded primarily in the United States. The Hedged Core Equity Fund pursues a long/short strategy in which the portfolio manager targets an allocation of 100-130% in long positions and 0-30% in short sales as a percentage of net assets, generally resulting in a target net (i.e., combined long and short) equity exposure position of 100%. The amount of the target net position will vary according to market opportunities. When the Fund has a long position, the Fund actually owns a security in anticipation that its price will increase. In a short sale, the Fund sells a security that it does not own and, therefore, borrows to complete the sale. A short sale is done in anticipation of purchasing the same security at a later date at a lower price. As a non-fundamental policy, under normal circumstances, the Hedged Core Equity Fund invests at least 80% of the value of its net assets in equity securities. If the Hedged Core Equity Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and change the name of the Hedged Core Equity Fund.

The Hedged Core Equity Fund seeks to capitalize on opportunities presented by changing market environments. The Hedged Core Equity Fund seeks to buy the highest returning securities and short the weakest returning securities in the current market environment as determined by quantitative techniques incorporated into a multi-factor model. This model attempts to capitalize on the theory that the financial markets are dynamic and investment opportunities vary over time. The Hedged Core Equity Fund attempts to benefit from stock pricing anomalies based on various factors, such as:

Portfolio optimization is used to build a risk controlled portfolio by buying the highest ranking stocks and shorting the lowest ranking stocks from the model while adhering to various risk constraints. The portfolio will generally be rebalanced on a monthly basis. The expected turnover rate for this portfolio is expected to be 150-200% per year under normal market conditions.

With a long position, the Hedged Core Equity Fund purchases a stock outright; with a short position, the Hedged Core Equity Fund sells a security that it does not own and must borrow the security to meet its settlement obligations. To complete the short-sale transaction, the Hedged Core Equity Fund buys the same stock in the market and returns it to the lender. The Hedged Core Equity Fund makes money if the market price of the stock goes down after the short sale. Conversely, if the price of the stock goes up after the short sale, the Hedged Core Equity Fund will lose money because it will have to pay more to replace the borrowed stock than it received when it sold the stock short. Short positions may be used to hedge against the volatility of the long portion of the overall portfolio and/or to garner returns from declines in securities prices. The Hedged Core Equity Fund may take long and short positions in the same sector/industry. While the Hedged Core Equity Fund’s securities may be held either long or short, no security will at the same time be held both long and short.

The equity securities in which the Fund may invest include common stock, preferred stock, securities convertible into common stock or securities (or other investments) with prices linked to the value of common stocks. The Hedged Core Equity Fund may also engage in securities lending in order to generate additional income. The Fund may also utilize derivatives, contracts whose value is based on the performance of the underlying asset, including options on futures, to hedge positions, leverage positions or generate income. Leveraging is the use of borrowed assets to make additional investments. Under normal market conditions, the Hedged Core Equity Fund expects that its use of derivatives for non-hedging purposes will not exceed 10% of its assets. In addition, the Hedged Core Equity Fund may invest in exchange-traded funds.

Principal Risks

The Hedged Core Equity Fund cannot guarantee that it will achieve its investment objective.

Aberdeen Hedged Core Equity Fund

26

Section 1 – Aberdeen Hedged Core Equity Fund

Summary and Performance (continued)

As with any fund, the value of the Hedged Core Equity Fund’s investments – and therefore, the value of Hedged Core Equity Fund shares – may fluctuate. These changes may occur because of:

Stock Market Risk – individual stocks, as well as stock markets overall, fluctuate in value considerably. The Hedged Core Equity Fund could lose value if the stocks in which it maintains long positions go down, or if the stocks which the Hedged Core Equity Fund sells short increase in value.

Strategy Risk – The strategy used by the Hedged Core Equity Fund’s portfolio manager may fail to produce the intended result. There is no guarantee that the use of long and short positions will succeed in limiting the Hedged Core Equity Fund’s exposure to stock market movements, capitalization, sector swings or other risk factors. The strategy used by the Hedged Core Equity Fund’s portfolio manager involves complex securities transactions that involve risks different from those involved with direct investment in equity securities. As a result, the Hedged Core Equity Fund is intended for investors who are able to maintain their investment over a longer term and are willing to assume the risks associated with this type of fund.

Short Sales Risk – the risk that the price of the security sold short will increase in value between the time of the short sale and the time the Hedged Core Equity Fund must purchase the security to return it to the lender.

Leverage Risk – the use of leverage may exaggerate changes in the net asset value (“NAV”) of Hedged Core Equity Fund shares and thus result in increased volatility of returns. The amount that the Hedged Core Equity Fund must repay may fluctuate due to market forces, and the Hedged Core Equity Fund’s assets that are used as collateral to secure the leverage may decrease in value during the time the leverage exposure is outstanding, which would require the Hedged Core Equity Fund to use its other assets to make up a shortfall in the value of the collateral. Leverage will create interest and other expenses for the Hedged Core Equity Fund which can exceed the income from the assets purchased with the leverage and thus reduce overall Hedged Core Equity Fund returns.

Derivatives Risk – derivatives can disproportionately increase losses and reduce opportunities for gains when the security prices, interest rates, currency values or other such measures underlying derivatives change in unexpected ways. They also present default risks if the counterparty to a derivatives contract fails to fulfill its obligations to the Hedged Core Equity Fund.

Securities Lending Risk – the risk that the loaned securities may not be returned if the borrower or the lending agent defaults. The collateral is also subject to the risks of the securities in which it is invested.

Exchange-Traded Funds Risk – the risk associated with a particular exchange-traded fund (ETF) corresponds closely to the risk of the asset subclass the Hedged Core Equity Fund is tracking. An ETF will perform well when the index it tracks is making gains, but may perform poorly when that index is falling. The Hedged Core Equity Fund will also bear a pro rata portion of the ETF’s expenses. In addition, some ETFs are more thinly traded than others, which could make it difficult to sell at the desired price, especially in a market downturn.

Portfolio Turnover – the Hedged Core Equity Fund may engage in active and frequent trading of portfolio securities. A higher portfolio turnover rate increases transaction costs and as a result may adversely impact the Hedged Core Equity Fund’s performance. High portfolio turnover may also increase share price volatility and may generate more short-term capital gains that will generally be taxable to Fund shareholders as ordinary income.

If the value of the Hedged Core Equity Fund’s investments goes down, you may lose money.

For additional information regarding the above identified risks, see Section 2, Fund Details: Additional Information about Investments, Investment Techniques and Risks.

Performance

The returns presented for the Hedged Core Equity Fund reflect the performance of the Nationwide Hedged Core Equity Fund (the “Predecessor Fund”), a series of Nationwide Mutual Funds. The Hedged Core Equity Fund has adopted the performance of the Predecessor Fund as the result of a reorganization in which the Hedged Core Equity Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Hedged Core Equity Fund and the Predecessor Fund have substantially similar investment objectives and strategies, except the Hedged Core Equity Fund targets an allocation of

Aberdeen Hedged Core Equity Fund

27

Section 1 – Aberdeen Hedged Core Equity Fund

Summary and Performance (continued)

100-130% in long positions and 0-30% in short sales, and the Predecessor Fund targeted an allocation of 80-100% in long positions and 30-35% in short sales.

The bar chart and table below can help you evaluate both potential risks and potential rewards for the Hedged Core Equity Fund. The bar chart shows how the Fund’s annual total returns have varied from year to year. The returns in the bar chart have not been adjusted to show the effect of taxes and do not reflect the impact of sales charges. If taxes and the applicable sales charges were included, the annual total returns would be lower than those shown. The table compares the Fund’s average annual total returns to the returns of a broad-based securities index. The bar chart and table assume that all dividends and distributions are reinvested in the Fund. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.

Annual Total Returns – Class A Shares

(Years Ended December 31)

Best Quarter: 3.09% – 2nd qtr. of 2007

Worst Quarter: -3.64% – 4th qtr. of 2007

After-tax returns are shown in the table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average annual total returns(1)

as of December 31, 2007

Aberdeen Hedged Core Equity Fund

28

Section 1 – Aberdeen Hedged Core Equity Fund

Summary and Performance (continued)

Fees and Expenses

This table describes the fees and expenses that you may pay when buying and holding shares of the Hedged Core Equity Fund depending on the share class you select.